Syllabus: SQA - Higher Course Spec Business Management
Module: Understanding Business
Lesson: Decision Making

Introduction

In SQA’s Higher Business Management course, the “Understanding Business – Decision Making” strand plays a foundational role in helping learners grasp how organisations operate and adapt in dynamic environments. This topic supports students in analysing how internal and external factors influence business decisions — a key skill not only for success in the SQA exam but also in life beyond the classroom.

Aligned with the official SQA specification, this section helps students build confidence in using structured models, applying logical reasoning, and interpreting business data. It also lays the groundwork for later topics on strategic planning, finance, and organisational culture.

Key Concepts

The Decision Making unit in “Understanding Business” explores the following core areas from the SQA Higher Business Management course:

• Types of decision making: Strategic (long-term), Tactical (medium-term), and Operational (day-to-day).

• Decision makers: Who makes decisions at each level within an organisation and the importance of accountability and delegation.

• Internal and external factors influencing decisions: Finance, staffing, technology, legislation, competition, and the wider economic environment.

• Decision-making models: Structured approaches like SWOT analysis and PESTEC to support rational decision-making.

• Gathering and interpreting information: The role of market research, internal data, and stakeholder input in making informed choices.

• Impact of effective vs ineffective decisions: Measured in terms of profitability, reputation, efficiency, and staff morale.

These areas are tightly connected to other strands of the course, particularly finance and operations, giving students a broader view of how businesses function holistically.

Real-World Relevance

Every business — from local cafés to global giants — relies on effective decision making. For example, when Greggs pivoted to a delivery model during the pandemic, that strategic decision kept the brand relevant and profitable. At the other end of the scale, a school uniform shop choosing to invest in e-commerce is making a tactical decision that directly affects customer reach and revenue.

Students can also relate this to everyday decisions in school settings: a headteacher choosing to invest in new IT equipment is navigating the same constraints and trade-offs businesses do.

Encouraging students to spot decision-making in real life (from sports clubs to part-time jobs) makes the learning stick.

How It’s Assessed

This topic appears across the final SQA assessments in both the question paper and the assignment.

In the question paper, students may face:

• Scenario-based short-answer questions (e.g. “Explain two internal factors that may influence this decision”)

• Extended responses requiring structured analysis or evaluation (e.g. “Discuss the impact of poor decision making on a business”)

Key command words include:

• Explain – show understanding by outlining cause and effect.

• Discuss – examine different aspects or impacts.

• Analyse – break down information into components.

• Justify – give reasons for a specific decision or viewpoint.

In the assignment, students must apply decision-making frameworks (like SWOT or PESTEC) to a real business they’ve researched. This brings the topic to life while developing transferable skills in analysis and synthesis.

Enterprise Skills Integration

Decision making is more than a business function — it’s a core life skill. In this module, students practise:

• Problem-solving – weighing options using structured models

• Data literacy – interpreting information to support conclusions

• Collaboration – evaluating the role of different stakeholders in shared decisions

• Resilience and adaptability – understanding that even well-informed decisions can have mixed outcomes

These skills directly align with the Enterprise Skills brand message: learning by doing and thinking that lasts.

Careers Links

This topic supports Gatsby Benchmarks 4 (Linking curriculum learning to careers) and 5 (Encounters with employers and employees).

Relevant career pathways include:

• Business management – from team leaders to directors

• Retail and hospitality – where operational decisions are made daily

• Public sector roles – where balancing budget constraints with service needs is essential

• Entrepreneurship – every decision shapes the direction and survival of a small business

You can extend lessons by bringing in guest speakers or setting up simulated boardroom scenarios where students role-play different job roles and decision outcomes.

Teaching Notes

Tips for delivery:

• Use relatable examples: school policies, student council budgeting, or local business choices.

• Bring in structured tools like decision grids or SWOT templates.

• Link to digital tools – spreadsheets or decision-making software – if accessible.

Common pitfalls:

• Students often confuse strategic, tactical, and operational decisions. Use case studies to reinforce the difference.

• There’s a tendency to list factors without analysing how they actually influence decisions. Use guided questions to dig deeper.

Extension ideas:

• Assign groups to act as a business board, facing a decision (e.g. opening a new site, launching a product).

• Challenge students to audit a decision made in their school and present an alternative using PESTEC.